Nebius Reports Surging Margins Amid Pricing Power and $200 Billion Funding Gap
Nebius Group (NBIS) has seen a dramatic turnaround in its EBITDA margins, rising from -24.33% in Q4 2025 to 44.38% by Q2 2026, driven largely by strategic pricing and capacity management. The company is leveraging scarcity of GPU resources to command higher prices for both long-term contracts and short-term auctions, with some deals fetching up to $50 million per megawatt. Despite the strong margin improvement and a stock price that has risen over 150% year-to-date, Nebius still trades at an EV/Revenue multiple of just 9.34x, below its historical average and far from the peak it reached in late 2025. However, free cash flow turned sharply negative in Q2 as capital expenditures surged, pushing the company into $2 billion of net debt within a single quarter. Nebius has secured only about 20% of the estimated $250 billion needed to fund its 5-gigawatt capacity pipeline. This leaves it with a significant financing gap that must be addressed while maintaining pricing power and operational momentum.
Tickers: $NBIS
Topics: EBITDA margins financing needs free cash flow GPU cloud pricing Nebius